Blended finance is key to bridging deep tech's valley of death
Australia’s deep tech startups clear the first hurdle from lab to prototype, but many stall at scale. Blended finance could be the solution.
Australia’s deep tech founders don’t face one “valley of death”. They face two. It’s like trekking through Mordor and then looking up to realise you still have to blow up the Death Star.
The first valley is the step from lab bench to proof of concept. This is where science becomes a prototype, where an idea leaves the university and starts to look like a product. Here, Australia is actually pretty good. We have a robust grant environment and strong universities.
Universities are becoming increasingly commercial. From the outside, it can feel frustrating — the processes, the policies, the “standard terms”. But here’s what I’ve learned working closely with UNSW this year: just like in venture capital, all the rules get thrown out the window for the best companies. When there’s a standout deal, people inside the university become very commercial, very fast.
Universities are partners. When aligned, they are critical in helping companies cross that first valley. The key for founders is finding the right person inside the university who can push things through.
